Revenues of $1,159,836 for the first quarter decreased 18% compared to $1,415,218 for the same three month period last year. Sales from our shipboard and safety climb product lines are down $123,755 and $108,045, respectively quarter over quarter.

Cost of sales and contracts from operations were $1,319,406 for the quarter ended September 30, 2012 compared to $779,319 for the quarter ended September 30, 2011, up $540,087, or 69%. The $540,087 increase consists of approximately $600,000 reserve for slow moving inventory offset by a $59,913 (or 8%) decline in cost of goods sold on back of 18% decrease in sales quarter over quarter. The Company reviewed its policy in estimating slow moving inventory to more accurately value inventory that may have become impaired or obsolete due to advancing technology or changes in demand of product by some customers. As such, the Company incurred a charge of approximately $600,000 which represents a reserve of $197,794 and $402,206 against the raw material and finished goods inventories, respectively. Gross profit margins for the quarter, at 38% before the slow moving inventory charge, were down seven basis points from the 45% gross profit margin reported in the comparable period last year, related to a higher level of overhead rates and a change in the product mix.

Sales and administration expense of $537,996 is down $207,374 or 27.8% for the three month period ended September 30, 2012 compared to the prior year expense of $745,370 related to an increase in plant utilization overhead. Research and development costs of $174,096 were up $74,634, for the three months ended September 30, 2012 compared to $99,462 in the prior year. The increase represents continued product development for the commercial wireless product line.

The Company recorded a net loss of $785,372, or $0.34 per share for the three month period ended September 30, 2012 compared to net loss of $120,255, or $0.05 per share for the comparable period in the prior year.

Backlog of Orders

The Company's backlog of orders on September 30, 2012, totaled approximately $1,951,400 compared to $1,487,491 at June 30, 2012, an increase of 31.1%. Incoming orders for the three month period ended September 30, 2012 totaled $1,627,363 versus $1,724,724 for the three month period ended September 30, 2011, a decrease of 5.6%.

More information and analysis of PHAZAR CORP’s financial results will be provided in the management discussion and analysis of financial condition and results of operations in the Form 10-Q for the three month period ended September 30, 2012, filed with the Securities and Exchange Commission on November 9, 2012.

The common stock of PHAZAR CORP is listed on the NASDAQ Capital Market under the trading symbol “ANTP”. This press release contains forward-looking information within the meaning of Section 29A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performances and underlying assumption and other statements, which are other than statements of historical facts. Certain statements contained herein are forward-looking statements and, accordingly, involve risks and uncertainties, which could cause actual results, or outcomes to differ materially from those expressed in the forward-looking statements. The Company’s expectations, beliefs and projections are expressed in good faith and are believed by the Company to have a reasonable basis, including without limitations, management’s examination of historical operating trends, data contained in the Company’s records and other data available from third parties, but there can be no assurance that management’s expectations, beliefs or projections will result, or be achieved, or accomplished.

PHAZAR CORP AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

SEPTEMBER 30, 2012 AND JUNE 30, 2012

September 30, 2012

(Unaudited)

June 30, 2012

CURRENT ASSETS

Cash and cash equivalents

$

797,814

$

528,876

Accounts receivable:

Trade, net of allowance for doubtful accounts of $0

as of September 30, 2012 and June 30, 2012

414,766

880,342

Inventories

1,904,988

2,376,427

Note receivable

1,523,465

1,477,161

Prepaid expenses and other assets

92,128

95,231

Income taxes receivable

29,321

29,321

Deferred income taxes

206,536

211,674

Total current assets

4,969,018

5,599,032

Property and equipment, net

964,622

997,426

Long - term deferred income tax

306,893

301,547

TOTAL ASSETS

$

6,240,533

$

6,898,005

CURRENT LIABILITIES

Accounts payable

$

170,653

$

274,628

Accrued liabilities

366,728

300,637

Deferred revenues

164,500

19,619

Liabilities held for discontinued operations

114,571

114,571

Total current liabilities

$

816,452

$

709,455

TOTAL LIABILITIES

$

816,452

$

709,455

COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS’ EQUITY

Preferred Stock, $1 par, 2,000,000 shares authorized, none issued

or outstanding, attributes to be determined when issued

-

-

Common stock, $0.01 par, 6,000,000 shares authorized

and 2,394,228, and 2,391,628 issued on September 30, 2012 and June 30, 2012, respectively

23,943

23,917

Additional paid in capital

4,756,677

4,735,800

Treasury stock, at cost, 74,691 shares on September 30, 2012 and June 30, 2012